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Jan 30, 2014

ICICI Bank Q3 profit rises 13%

ICICI Bank posted a 13% increase in net profit at 2,532 Cr for the December quarter, on stable interest income and healthy loan growth in the retail segment. Chanda Kochhar, MD and CEO, said that but for the provisions of 215 Cr towards additional deferred tax, the profit would have grown 22%. Provisions towards bad loans during the quarter rose 88% to 695 Cr from 369 Cr a year ago. Net interest income was at 4,255 Cr, up 22%. Non-interest income was up 26% at 2,801 Cr. The bank made a treasury profit of 447 Cr during the quarter, compared to a loss of 72 Cr in the second quarter. Despite the hike in policy rate, ICICI Bank expects to sustain its net interest margin as the bank’s dependence on short-term funding is low. Overall, the loan portfolio increased 16%, driven by 22% growth in retail advances. Given the challenges in the economic climate, the bank moderated its corporate loan growth to 7% (year-on-year) in the December-quarter, against 11% in the preceding quarter. Total deposits witnessed 11% growth including one-time deposits inflow of $2 billion raised via the FCNR (B) route. NPAs in net terms, worsened to 3,118 Cr compared to 2,182 Cr at Dec 31, 2012.

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